Finance: Stocks Vs Treasury Bonds

Historically, we know that stocks are not dangerous than US Treasury bonds. Over the past two decades, people have done a lot of research on this subject. Jeremy Siegel of the Wharton School of the University of Pennsylvania said, "The safest long-term investment to protect purchasing power is obviously a stock, not a bond." The interest rate is close to 11%, but on the other hand, the government bonds return only slightly more than 5%.

Today, let's take a look at the US Treasury Department ETF $ TLT and the Standard & Poor's 500 Index ETF $ SPY. It is very easy: stocks and bonds? Since 2007, since US government bonds are relatively few, why did not you pass the first year of this structural bull market? This was a dead money deal for 10 years. At the end of last year, this ratio surpassed the new highs, which is the highest point since 2007 and shows that it is not the beginning of a new initiative after 10 years of integration.

The US Treasury Department uses the auction in the Netherlands to sell securities. To support the financing of US Treasury, the US Treasury regularly holds an auction to sell T-bills, invoices (T-notes) and bonds (T-bonds), which are known as government bonds doing. Potential investors electronically bid through the automatic auction processing system (TAAPS) which accepts bids by TreasuryDirect or the Treasury auction 30 days in advance. Google chose a Dutch auction to get a fair price for public offering. Potential buyers send bids based on the number of shares they need and the price they are willing to pay for them. After the auction, the underwriters screened the price to determine the lowest price they would accept and landed at $ 85 IPO per share.

Treasury bonds are one of four types of debt issued by the US Treasury to fund government expenditure activities. The four types of debt are government bonds, government bonds, government bonds and national stock inflation protection securities (TIPS). Securities vary depending on due date and coupon payment. All of these are regarded as benchmarks of comparable bond categories, as they are supported by the US government with little risk and full of taxes and increased sales to ensure full payment. These investments are also considered a benchmark for each bond category to provide a basic risk-free investment rate and the lowest return on that category.